An analysis of corporate governance within the framework of state owned enterprises governance act in Namibia with specific focus on Namwater, Nampower and Transnamib
Thesis (MBA)--Stellenbosch University, 2012.
Recently, and over the last few years, a number of major State-Owned Enterprises (SOEs) have not been financially sustainable. There have been revelations of increased misappropriations of funds and millions of dollars in dubious investments. The alleged reason for the failure of these SOEs has been the lack of efficient corporate governance. The objective of this research report was to analyse the challenges and successful aspects faced by SOEs in Namibia with regards to the enforcement of good governance within the SOEs Governance Act No.2 of 2006. The report further aimed to establish whether the SOEs Governance Act provides appropriate mechanisms to ensure good corporate governance within the enterprises and investigate whether the act has been enforced. To attain these objectives, the report presented a review of Namibia’s SOE sectors and SOE Acts. In addition, interviews were conducted with representatives of three SOEs in Namibia, that of TransNamib, NamWater and NamPower. Namibian SOEs are faced with challenges in terms of maintaining good governance. The SOEs are compelled by state pressure to adopt more goals such as social development and political objectives on top of their profit motive. Thus, by acting in the best interest of state-owned enterprises, various boards may be in conflict with the interests of the government with regards to social and political goals. Based on the evidence presented in this research report, the study points out five crucial aspects of non-conformance to best practices that can be used as lessons and as a basis from where Namibia can spearhead its corporate governance practices for SOEs within the framework of the State-owned Enterprises Governance (SOEG) Act.